Mergers and acquisitions (M&As) worldwide - statistics & facts
Mergers and acquisitions have become integral to corporate growth, with deal activity consistently showing robust numbers even amidst global economic uncertainty. Companies are increasingly looking beyond organic growth, seeking acquisitions or mergers to gain access to new markets, diversify their portfolios, achieve synergies, or enhance technological capabilities. The value of global M&A deals worldwide amounted to 2.5 trillion U.S. dollars in 2023, with the United States being the most dynamic market and accounting for more than half of the total. China's M&A activity, while tempered by regulatory scrutiny and geopolitical tensions, has grown significantly: Chinese firms have been targeting sectors such as technology and healthcare, both domestically and internationally, to support their economic growth. Emerging markets such as India and Brazil have also become attractive M&A destinations, particularly in sectors like consumer goods, technology, and energy.
M&As remain a powerful tool for shaping the future of global business. Whether for competitive positioning, strategic expansion, or survival in an increasingly volatile market, companies will continue to pursue deals that redefine industries and global economies.
Which are the most active sectors for M&As?
Several industries consistently dominate M&A activity due to their dynamic nature and ongoing need for consolidation or innovation. In 2023, the technology, media and telecommunications sector was the most active in terms of M&As. Companies in this space are acquiring smaller firms at an aggressive pace, aiming to integrate emerging technologies such as artificial intelligence, cloud computing, and cybersecurity. Healthcare is another key driver of global M&A, as pharmaceutical companies often turn to acquisitions to replenish their drug pipelines or expand into new therapeutic areas. Consolidation has become a key theme also in the financial services sector, particularly among banks, insurance companies, and fintech firms. The integration of technology in financial services has pushed traditional players to acquire or merge with fintech companies to remain competitive in an evolving digital landscape. These sectors consistenly rank among the top five, together with the energy and the chemical sector. This ranking, however, largely depends on so-called mega-deals, which can significantly impact a sector’s performance.Opportunities and challenges in the near future
Looking ahead, the global M&A market is poised for both challenges and opportunities. While rising interest rates, inflation, and geopolitical tensions could temper deal-making in certain sectors, the overall trend of consolidation and innovation-driven acquisitions is expected to continue. Industries such as technology, healthcare, and energy will likely lead the charge. Also, private equity firms are sitting on considerable amounts of unallocated capital, which may drive further activity as they seek targets in both developped and emerging markets. On the other hand, cross-border deals could face increased regulatory scrutiny due to national security concerns, especially in sensitive industries.M&As remain a powerful tool for shaping the future of global business. Whether for competitive positioning, strategic expansion, or survival in an increasingly volatile market, companies will continue to pursue deals that redefine industries and global economies.
